What Constitutes a Minority Owned Business?

Minority owned businesses can obtain an MBE certification.

Starting and running a business is challenging, but there are several resources and programs available that are focused on increasing diversity and helping business owners from certain minority groups succeed.

Definition

According to the U.S. Small Business Administration, minority-owned businesses operate under the ownership and direction of a minority such as an African-American, Hispanic, Asian, Pacific Islander or American Indian/Alaska Native. At least 51 percent of the ownership rights to the business must be held by minority owners for the business to be considered minority owned.

Certification

A minority-owned business may obtain a certification as a minority business enterprise (MBE) through several different government or private agencies. A certified MBE is recognized as a business that has met the requirements of the certification process including providing sufficient evidence that the minority owners are involved in the daily operations of the business and are U.S. citizens or residents.

Benefits

Owners of minority-owned businesses have access to additional resources and financing to help them expand. There is also several government and private programs available for minority-owned businesses which allow them to take advantage of procurement opportunities.

References

• Business.gov: Minority Owned Businesses
• KeyBank.com: Certifying Your Business